New line of audit at state agency

Comptroller opens study of contracts; spending scrutinized

Published 6:36 pm, Wednesday, October 2, 2013

Albany

NYSERDA, the state's energy development arm, is facing an audit by the state comptroller's audit over its contracts — the second open audit over its finances.

The newest audit covers contract award and performance, according to an Aug. 27 letter sent by the comptroller's office to NYSERDA Chairman Richard Kauffman, who started in the job in June after becoming Gov. Andrew Cuomo's energy "czar."

That audit on discretionary spending began last fall as part of a statewide audit of public authorities by state Comptroller Tom DiNapoli. It is expected to be completed in the coming months.

The new audit on the authority's contracts began on Sept. 18, authority treasurer Jeff Pitkin told the audit committee of its board of directors on Monday. Pitkin said that about three months of "field work" needed to be completed as part of the audit.

NYSERDA, which has an annual budget of about $800 million, provides grants through performance-based contracts that are monitored by the agency. It collects most of its grant and program funding through fees on gas and electric utility bills.

The authority is also the subject of a state Inspector General's Office investigation into alleged favoritism in helping an unnamed contractor win contracts.

NYSERDA spokeswoman Kate Muller had said last month that NYSERDA is cooperating with the Inspector General's Office and takes the allegations "very seriously."

In January, NYSERDA general counsel Hal Brodie told the audit committee and its chairman, Bob Catell, that "contracts with this contractor were proper and complied with the authority's procurement guidelines," according to the minutes of the audit committee meeting.

Mark Johnson, a spokesman for DiNapoli, said the comptroller audit of NYSERDA's contracts is "not connected" to the inspector general's investigation.